The 2025 State of Logistics Report is out. It’s commissioned by the Council of Supply Chain Management Professionals (CSCMP) and prepared by global consulting firm Kearney with help from Penske Logistics.
Its title is “Navigating through the Fog”, which captures the confusion and uncertainty of the scene today.
Report highlights include:
- A notable report statistic, U.S. business logistics costs, is $2.3 trillion, which translates to 8.7% of the national GDP.
- There are multiple reasons why demand has not yet fully recovered. Chief among them are simultaneous geopolitical conflicts around the world, climate change (which has affected shipping lanes), high inflation, high interest rates, and, apart from the U.S., sluggish demand.
- As a result of the economic headwinds and geopolitical instability, the continued fragmentation of global trade is complicating supply chain transactions. Since the 2023 report was released, over 1,000 U.S. freight brokers have shuttered their doors.
- Some of the largest manufacturers and retailers are seeking to monetize their own logistics capabilities while viewing their supply chain successes as a service to market and profit from.
The annual report is well worth reading as a snapshot of what’s going on. But in these volatile times, it’s really hard to make predictions. Hats off to the authors for trying.
I liked this graphic from the report, which shows predicted changes in international goods flows between 2021 and 2031. With all the geopolitical issues we’re facing, things could change overnight, but one thing we see is a mammoth reduction in US trade with China. And they’re predicting even a bigger reduction in trade between the EU and Russia.
